An interest rate floor on a floating-rate note (from the issuer's perspective) is equivalent to a series of: Select one: a. Long interest rate puts b. Long interest rate calls X c. Short interest rate puts d. Short interest rate calls

An interest rate floor on a floating-rate note (from the issuer's perspective) is equivalent to a series of: Select one: a. Long interest rate puts b. Long interest rate calls X c. Short interest rate puts d. Short interest rate calls

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 5WNG

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Question

An interest rate floor on a floating-rate note (from the issuer's perspective)
is equivalent to a series of:
Select one:
a. Long interest rate puts
b. Long interest rate calls X
c. Short interest rate puts
d. Short interest rate calls

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Step 2: The perspective is from the issuer.

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